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Macy's to expand click-and-collect, pilots same-day delivery

Mar 13, 2014 11:23am

Macy's (NYSE: M) is laying the foundation to upgrade its click-and-collect service and introduce same-day delivery, even as it readies a new urban format.

The retailer rolled out its in-store pick-up program to 500 Macy's stores and 36 Bloomingdale's stores last fall, and so far the program is performing well. Terry Lundgren, Macy's CEO, told Women's Wear Daily that the company is investing in new technologies to accelerate its omnichannel capabilities and extend click-and-collect to 675 stores by the end of spring.

Another omnichannel strategy for Macy's helps the company determine in-store assortments. For example, Macy's says it leverages its online inventory to offer extended sizes, and if the item performs well online, the company then considers offering it in-stores.

All Macy's stores also have shipping capabilities off online orders, however, next up for the retailer will be exploring same-day deliveries. Macy's has begun a pilot of same-day service in partnership with eBay (NASDAQ: EBAY), UPS (NYSE: UPS) and FedEx (NYSE: FDX) and local delivery companies across the U.S.

"The important thing is the industry is trying very quickly to move toward faster deliveries," Lundgren said.

New store formats will be another area of opportunity for Macy's in the coming months. In January, the retailer said it was planning to renovate the Brooklyn store, which could set the precedent for other stores located in urban neighborhoods around the U.S. This particular store will also reportedly display more floor sets targeted towards Millennials, with exclusive brands catering to 20-somethings, people familiar with the matter told WWD.